Quote from volente_00:
Mental stop is worthless when it moves against you 50+ on a eco number or program trade. The last thing you want to have to do is think as you sit there like a deer in the headlights as your account balance drops 30% on one bad trade.
Yep, I can attest to that. I'm a new trader as well. I got tired of trading 1000 shares with a 0.05 stop loss and getting the ol' "death by a thousand cuts".
...so I decided to only trade 100 shares at a time with a mental stop so I wouldn't lose as much. Well...to this day, that is still my all time worst day since I started trading!
I went long 100 shares BIDU. Then, I spent several minutes staring at the screen in disbelief.
First, you think to yourself, "it'll come back up".
Next, "come on, WTF!"
Next, "there's no way I am selling it now at this price"
Next, "OMFG"
Finally, you click the sell button and you think "i can't believe that just happened" and put you head in your sweaty hands with your mouth hanging open.
Next day you will find out that if you would have held you would be up a couple grand.
Anyway, lost 1,700.00 on 100 shares of BIDU.

No autographs please.